Financial Administration

PART II - Preaudit Steps

(NOTE: Authorized preauditors may also refer to the UW System Preaudit Standards and Tolerances Manual (STM) in accordance with institutional policy)

Authorized Preauditor - An authorized preauditor is an employe who has been delegated preaudit approval authority, in writing, by the Institution Business Representative (IBR). The delegation document should specify the types of transactions the employe is authorized to approve and provide an example of the form of the approval (signature, initials, stamp, etc.). The original delegation document should be kept on file in the institution business office. [Ref. Wis. Stat. S. 16.53]

Evidence of Preaudit - All audited transactions should be supported by evidence of preaudit by an authorized preauditor. This evidence can be endorsed directly on the transaction or annexed to the transaction, such as on a voucher summary listing. [Ref. Wis. Stat. S. 16.53(4)]

Questioned Transactions - Each institution should have a procedure to track or suspend transactions which are returned because the preauditor has determined there is an error, lack of documentation or other problem. A copy of any correspondence (e.g., a standard inquiry form) should remain permanently attached to the transaction after the problem is resolved. Preauditors should track audit discrepancy patterns for statistical analysis purposes and use the data to identify and resolve problem areas.

Audit steps for the types of transactions listed should be completed at the institution. These steps do not encompass all areas which should be reviewed; therefore, prudent judgment should be used to further ensure adherence to prescribed policies and procedures.

A. Transactions - General: [Ref. Wis. Stat. S. 16.53]

  1. Documentation is complete and understandable to an independent third party without additional information.

  2. Propriety and legality of the transactions in relation to the account charged, program mission, legislative intent, and to statutory, UW System and institution constraints. (See Appendix A for related references).

  3. Charges (or credits) are actual, reasonable, necessary and mathematically accurate. Excessive, unnecessary or unusual charges are explained or brought to the attention of the next higher authority.

  4. Payee, address and accounting code information are complete and accurate.

  5. Appropriate payment method.

  6. Required approvals.